Replace Compensation with Recognition?

June 2, 2010

As I mentioned last week, I recently attended the World at Work Total Rewards Conference sponsored by Towers Watson, the leading professional services company that helps organizations improve performance through people, risk, and financial management. The US Strategic Rewards Report (completed by Towers Watson) was highlighted at the conference noting growing companies in the US are investing more in their recognition programs because it is stimulating a greater energized and productive work force than compensation. The results from this year’s US Strategic Rewards Report created quite the buzz throughout the conference. 

Total Rewards are tools available to employers to attract, motivate, and retain employees.  Total Rewards consists of five elements: compensation, benefits, work-life, performance and recognition, and development and career opportunities.  The stress of the current economy has had an affect on the Total Rewards mix. What is the best combination to retain your employees and keep them engaged?

In 2009, recognition hit the radar with 23% of growing companies increasing the use of rewards and recognition while at the same time holding compensation flat or returning it to the former level; if it had been lowered.   An additional element of development and career opportunities is now part of the Total Rewards mix. Perhaps it’s because of the Gen Y’s hitting the work force by storm. 

In a typical organization, the Total Rewards elements would be weighed and given a perceived value by the employees; then employment decisions are made based on the value they place on the company’s Total Rewards package.  The employee has two options; take the job or look for a different employer they believe better suits their needs. More importantly, the Total Rewards elements impact the employee’s engagement and sense of value to the organization, the team, and their job. 

Now that’s a look at why recognition is so powerful  and is a very low cost way to stimulate engaged, productive, happy employees who take good care of your customers. Recognition is a valuable feedback and role-modeling vehicle.  It can also impact your culture – many successful organizations use it as a change accelerator. Whether it is adopting a new system or procedure or merely taking performance up a level.

Cost savings continued to be a strong focus at the conference; organizations are significantly reducing administration costs and increasing the perceived value of their existing recognition program by simply putting all recognition (safety, productivity, on-the-spot, manager’s discretion, health/wellness, years of service, and cultural/value-based) under one umbrella.  Our award-winning Anderson Enterprise Incentive Solution, AEIS® enables all employees to accumulate the recognition in one place and choose from a broader assortment of awards.  The management reporting is also a powerful tool to use for coaching.

What Total Rewards elements are on the top of your list? Is recognition on the top of your list?  Are you getting a significant return on investment in your people?  Are you stimulating continued improvement?


WorldatWork Conference Highlights

May 24, 2010

Last week I attended the WorldatWork Total Rewards Conference in Texas.  To be honest, this was one of the best conferences I have ever attended. 

The highlight of the conference was the opening session with Jeff Taylor, the founder of Monster.com.  He had a great message; if you want to be successful, you need to be an entrepreneur, not just in business, but in life.  Everyone can learn something from this message. 

He uses “FAME” as an acronym to communicate how you can achieve FAME:

F - Be a FREE Agent. If you do exactly what you are supposed to do and do a good job, it is not enough.  You need to work harder than anyone around you.  Seek out to learn more and ask for opportunities even if your plate is full. Volunteer to take on more at work and outside of work.

A -Train like an ATHLETE.  How hard can you work?  Athletes train sunrise to sunset.  Many athletes continue to work hard, even through pain and injury. They are innovative and focus on improving with diet, coaching, etc.  Try new things, work hard, and constantly push yesterday’s limits.

M - Prepare like a MARKETER in everything you do. If someone asks you “How’s it going?” and your key message is “Same Stuff Different Day,” it is highly likely you are going nowhere.  Prepare your message with a win for you and those who are listening.

E –Engage like an ENTREPRENEUR. Put yourself in the way; if you go to a meeting, run it. It is not about starting a business, but working on your entrepreneurial skills. Be a leader.

Fame will come to those whose skills are top notch and engage outside their job description.  What do think about Jeff’s message? Can you use FAME in your daily tasks?

Stay tuned . . . more to come from the Total Rewards Conference. Learn how a company’s flexibility and expansion of rewards and recognition is key to their innovation and employee retention.


The Importance of People

May 12, 2010

For years, I have been discussing the importance of recognition and emphasizing that people are your biggest asset. Take a look at this article in Fortune Magazine, “What makes the most admired companies different?”

What makes these companies admired is their dedication to understand that people are an asset, not an expense. This research was conducted by the Hay Group who annually assists Fortune Magazine in determining the World’s Most Admired Companies. The companies appearing on the top of the admired list are Apple, Google, Berkshire Hathaway, and Johnson & Johnson.

As stated by Fortune Magazine, if you think your employees are an asset, then you will keep investing in them.  Creating and sustaining a culture of recognition within your organization could be a way to motivate your employees to keep performing at top levels. On the flip side, if you think employees are an expense, then you’re likely to cut the expense.  This is especially true in a downsizing economy.

This new research conducted shows that top companies are making sure their employees feel engaged by their work. These firms are more likely to have stated what engagement means, how to measure it, to have managers accountable for it, and to align business objectives to it (efficiency, productivity, etc).  Not only more admired, but more profitable as well.

Another lesson learned from these top companies: this is not something they learned overnight; it has been a practice in place for years. Champions know what their most valuable asset is, and they give it the attention and investment it deserves.

What can your company do to make it more admirable?  Would creating a culture of recognition be on your list?


Health and Wellness Program Makes a Difference

May 3, 2010

One of the most pressing challenges employers face today is managing the cost of healthcare for their employees. And with all the talk about the rising health care cost, I thought you might find this article interesting. A small Minnesota organization actually decreased their health insurance claims due to a long-term commitment to a corporate-wide health and wellness program.

The employees of this company can participate in a variety of wellness activities including weight loss, reducing tobacco use, and battling high blood pressure. Each year, the focus changes depending on employee needs. They also have provided a range of presentations regarding health issues; this includes cancer awareness, stress management, etc.

Wellness and prevention are not only important, but may be the method to decreasing health care costs.  In 2007, the company had a reduction of 31.5% in health insurance claims.  This resulted in a company surplus in expected claims dollars of $160,000!

More and more companies are realizing the importance of health and wellness programs. In fact, within our organization, we currently have a health and wellness program.  We track the number of steps and the total minutes of activity daily. Each day, you are also presented with a fun Challenge-of-the-Day. You read a short wellness article, rate the article, add a comment if you’d like, and then earn points. Each day it is a different, challenging topic; for example, today we are challenged to do lunges when you go to the lunchroom, break room, etc. 

Not only has it made a huge impact on our employees, it has added a fun element to our workspace! More and more employees are redeeming the points earned from the program for “wellness” type rewards; one employee used her points to purchase a treadmill.

Has your organization instituted a health and wellness program?  Is your organization rewarding those who exhibit healthy habits?


Employees Are Exhausted

March 24, 2010

I would like you to read this interesting article appearing in the Minneapolis Star Tribune, “As workloads go up, worker loyalty falls, survey finds”. It discusses the decrease in employee attitudes and loyalty throughout many organizations, with several executives stating employees are “exhausted”.

After surveying 1,000 US adult workers, only 57% are willing to go “above and beyond”, a drop from 61%. This drop is in result of employees being asked to do too much for too long. The aftermath is people leaving and we all know the costs and time associated with bringing a new person on board.

What can you do to increase morale at your organization? Create a culture of recognition! Simply saying “Thank You” to your employees is a great start.


Client Session Provides Valuable Feedback

March 24, 2010

Recently I attended a client’s focus group session. The sessions are conducted in an open format where everyone is able to voice their comments about the current rewards and recognition program. At this point, the client has been using their recognition platform for two months. They surveyed 2 groups of users – management and non-management. This is always a great way to gather valuable feedback! And it definitely heightens your awareness of their current state of culture.

Even though I have been in the industry for almost 30 years, I was once again amazed at how passionate individuals are about the importance of recognition.  The managers noted it is critical, if not necessary, to have an easy way to recognize those who exhibit improvements and great accomplishments.  In fact, several managers were even recognized by their employees for providing great coaching and leadership. That is recognition at its finest! 

Both groups unanimously agreed recognizing people for doing a good job has a positive impact on productivity, which will result in the company being more profitable.  An actual comment from a non-manager said “It was nice to know my hard work was appreciated!”

The company that conducted the focus group sessions is not just going to measure perceptions, but will also be looking at productivity gains.  This systematic platform enables managers and non-managers to easily recognize individuals and teams for going “above and beyond” and for demonstrating the company’s core values in an exemplary way.  It also enables management to see who is sending and receiving recognition and for what reasons.

After attending the feedback sessions, I was surprised how many organizations do not use recognition.  Recent findings in the 2009/2010 US Strategic Rewards Report by World at Work and Towers Watson  highlights the unprecedented impact of the recession on organizations and their employees. The study highlights that as compensation and benefits were frozen, or in some cases even reduced, 23% of companies have increased their use of recognition programs.  More and more companies are seeing the need and value of rewards and recognition programs within their organizations.

 The results that were shared during the sessions were so interesting and such a true testament as to why recognition is so needed. Do you know the value of rewards and recognition in your organization?  Are you role modeling and recognizing those employees that ACTIVELY engage in support of  your strategies?  Do you think those that use recognition may be more likely to reach their strategic goals?  I would like to hear your thoughts. 


Feed My Starving Children

March 1, 2010

As a person who is passionate about giving back to our world, I am always looking for meaningful ways to support socially responsible organizations and the individuals they benefit. Last week, a group of us from Anderson Performance Improvement experienced an afternoon at Feed My Starving Children (FMSC). 

Feed My Starving Children is a non-profit Christian organization committed to feeding starving children around the globe.  The success of the organization is due to its fun and easy approach; school-aged children and adults pack meals formulated by food scientists for starving children.  Once the meals are packed, they’re sealed, boxed and stacked on pallets ready for shipment.

FMSC sends meals all over the world, including El Salvador, Haiti, and Nicaragua, to name just a few. We learned how our 2 hours of effort can change the lives of hundreds of children.   At the end of the day, we were able to feed 33 children for one full year!  It was truly an amazing experience. 

What is your organization doing to support social responsible initiates?  Please let me about.


Conversationalist has a new meaning…

February 17, 2010

I recently ran across an interesting article in Advertising Age about “Reaching Out to Conversationalists.”  Conversationalists – who are they?  I asked the same thing.  According to Merriam-Webster, it is one who converses a great deal or who excels in conversation.  But wait, a new meaning has emerged!  According to Forrester Research, it is the group who has the behavior of rapid back-and-forth discussion in social media networks (like Twitter and Facebook) at least once a week.

The group’s demographics might surprise you.  You might picture college age, male – well, guess again.  70% of this group is 30 or older, 56% female, household income is $2000 higher then the average online consumer, and their level of engagement is sky-high!

To me, the biggest shock is the number of online consumers who are NOT using social media, which is down to 17% and dropping at a quick rate. Are you using social media to its full potential to reach possible clients?

As we all know, social media is a successful way to market your business.  It’s a great way to expand your blogging efforts, gain exposure to your products and services or find a new salesperson for your organization.

For example, consider Ford using social media to promote a new Fiesta model.  They invited dozens of social media users (with a specific demographic, of course) to live with the car for six months. Not only are they receiving valuable feedback, but they are also building a broader awareness of Ford.  This really shows Ford cares about what their customers (and potential customers) think.

Or retail chain Target’s charity campaign.  The company launched “Bullseye Gives” an online voting application on Facebook.  Users select one of the ten charities listed they would like to see funds allocated to.  The money is given out on percentages; 10% of the votes gets 10% of the money. Because these social media applications are so smart, the vote is published on your Facebook feed which means your friends will see it – and more and more will become fans of Target.  Very clever!

How can social media campaigns work for you?  What are your organization’s strategies using social media?


How to Make a Sale in a Down Economy

January 25, 2010

During this down economy, I have been approached by several colleagues on how to increase sales.  The typical question I receive is “What is the fastest way to increase sales in our current economy?” This particular message was sent from the CEO of a mid-size company. During these difficult times, it is a whole different ballgame and you need to target your sales efforts differently.

Everywhere you look companies are slashing budgets, but you can still make the sale.  How do you handle that less than desired answer “We don’t have a budget for that.”  You want to make sure your sales people have the right focus.

According to the Harvard Business Review, “In a Downturn, Provoke Your Customers” (March 2009), by using provocation-based selling, they persuade customers that the products or solutions you bring to the table are not just nice, but necessary.  How do you change your existing sales force to this new way of thinking?  Recognize them for making the transition to the new desired tactics.

Here are 3 steps provided by the Harvard Business Review that you can do to ramp up your sales force.

  1. Identify a critical problem facing your customer, something so large that the company will locate the funds.  Ask yourself “What is keeping the CEO up at night”?
  2. Bring a new perspective to the problem; use research and brainstorming to create a new view for the problem.  For example, you are thinking X, and maybe you should be thinking Y.
  3. Target the executive to lodge the provocation with someone that has the power to approve it.  Many of the executives you and your sales force have forged relationships with are no longer there, but you can motivate those new contacts by using provocation-based selling.

Of course, this approach is not going to happen overnight or be the answer to all selling situations, but it can shine a new light on age-old selling problems. It can get everyone thinking in the right direction.

No matter what your sales strategies are for 2010, it is most important to reward those sales people who are creating innovative solutions and those who break new sales barriers. Take a look at my white paper, “Impact Your Bottom Line Now, Build a Culture of Recognition.”  Creating a culture of recognition can and will impact your sales people by creating engaged and motivated employees.

What are your strategies to increase sales within your organization?  Does it include recognition? I would love to hear your thoughts.


Appreciate your Employees with Recognition

December 4, 2009

In the spirit of Thanksgiving, and as the Holiday Season approaches, I would like to take this time to thank my staff and clients for a great year!

I would like to sincerely thank my clients for your continued partnership and to congratulate you for staying so focused on your goals. Thank you for being an advocate for your company employees, channel partners, and keeping your corporate vision top of mind. 

This is a great time of year to recognize and thank each of your staff members for the things they do well.  It is also a good time to recognize the outstanding and innovative energy they put into your company.  Appreciate your staff with recognition.

I recently reviewed the McKinsey Quarterly Survey (June 2009) which stated three non-cash motivators – praise from immediate managers, leadership attention, and the chance to lead important projects – are viewed as motivational as the highest rated financial incentives – cash bonuses, increases in base pay, and stock options. These findings show how powerful non-cash recognition is, and it’s as simple as saying thank you! 

This Holiday Season, thank your team for their hard work and diligent efforts.  Showing appreciation will play a critical role in making your employees feel that you value them, take their well-being seriously, and strive to create opportunities for their career growth.

What are you doing to show appreciation within your organization?

We have had a great year and are looking forward to an even better 2010!

Thank you!


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